IPO Monitor | Retail Subscription to 13.08M UQDC Shares Starts on TASI Today
Tadawul All Shares Index TASI.SA | 11463.90 | -0.78% |
Umm Al Qura for Development and Construction Co. (UQDC) has launched its retail offering today, March 5, with 13.08 million shares available on the Main Market (TASI) at SAR 15 per share, as determined through the book-building process.
The shares allocated to individual investors account for 10% of the total shares offered in the public subscription.
The subscription period will remain open for five days (three business days), concluding on March 9. Eligible Individual investors can now participate in the offering on Sahm Platform
Key Highlights
- IPO Size:
- Total shares offered: 130,786,142 ordinary shares, representing 9.09% of the Company’s share capital post-capital increase (equivalent to 10.0% of pre-increase share capital).
- Offer price: SAR 15 per share.
- Valuation upon listing: SAR 21.58 billion (~USD 5.75 billion)
- Strong Institutional Demand:
- Institutional tranche oversubscribed 241 times, with orders totaling SAR 473 billion (~USD 126 billion).
- Final price reflects robust confidence in Umm Al Qura’s role in reshaping Makkah’s urban landscape under Saudi Vision 2030.
- Retail Subscription Timeline:
- Retail investors can subscribe from March 5–9, 2025, via eligible Saudi and GCC accounts.
- Up to 10% of shares (13.08 million) allocated to retail; unsubscribed portions may shift to institutional investors.
- Lock-Up & Listing:
- Major shareholders face a 6-month lock-up period post-listing.
- Shares to trade on the Saudi Exchange’s Main Market after IPO formalities.
Related read: TASI IPOs: 91% Win Rate on First Day and the Secrets Behind It
Company Information:
Umm Al Qura for Development and Construction Co. (UQDC)
- Type: Closed joint-stock company in Saudi Arabia.
- Established: 2012 by royal decree.
- Focus: Develops real estate assets along King Abdulaziz Road in Makkah under the "Masar" brand.
- Activities: Land acquisition, sales, and subdivision. Off-plan property sales and property management. Residential and commercial construction, including schools, hospitals, hotels, roads, bridges, and tunnels.
Pre-IPO Capital: SAR 13.08 billion, divided into 1.31 billion shares at SAR 10 per share.
Post-IPO Capital: SAR 14.39 billion with 1.44 billion shares.
MASAR Project Overview
- MASAR is a major urban redevelopment project in western Makkah, spanning 3.65 km and covering 1.25 million square meters across 205 plots. The net built-up area is 460,900 square meters. As of November 2024, 99.77% of core infrastructure work was completed, with full completion expected in H1 2025. The project will feature residential and serviced apartments, hotels, retail centers, healthcare facilities, and office spaces.
Investor Allocation Structure
Tranche A (Institutional):
- Initial allocation: 130.8 million shares (100% of the total offering shares).
- May reduce to 117.7 million (90%) if retail demand exceeds expectations.
Tranche B (Retail):
- Open to Saudi nationals, residents, GCC citizens, and eligible widows/divorcees managing minors’ accounts.
- Allocation capped at 13.08 million shares (10% of total offering); unsubscribed shares proportionally reduced.
Foreign Ownership Restrictions
- Non-Saudis are prohibited from direct ownership of real estate in Makkah and Madinah under Saudi law.
- Exceptions: Foreigners may invest in listed Saudi companies (e.g., Umm Al Qura) owning properties in these cities, provided:
- Foreign ownership does not exceed 49% of shares.
- No single foreign strategic investor holds shares in the company.
Substantial Shareholders of the Company Pre- and Post Offering
| Pre-Offering | Post-Offering | |||||
|---|---|---|---|---|---|---|
| Shareholder | Number of Shares | Total Nominal Value (SAR) | Percentage | Number of Shares | Total Nominal Value (SAR) | Percentage |
| GOSI | 345,980,070 | 3,459,800,700 | 26.45% | 345,980,070 | 3,459,800,700 | 24.05% |
| PIF | 282,302,039 | 2,823,020,390 | 21.59% | 282,302,039 | 2,823,020,390 | 19.62% |
| Dallah Albaraka Holding Company | 103,111,395 | 1,031,113,950 | 7.88% | 103,111,395 | 1,031,113,950 | 7.17% |
| Shareholders Acting in Concert | 227,465,344 | 2,274,653,440 | 17.39% | 227,465,344 | 2,274,653,440 | 15.82% |
| Total | 958,858,848 | 9,588,588,480 | 73.31% | 958,858,848 | 9,588,588,480 | 66.66% |
Source: The Company
* The number, value and percentage of shares owned by the Shareholder Dallah Albaraka Holding Company were calculated once upon calculation of the final total number of shares, their value and ownership percentage, in order to avoid calculating them more than once within the total.
Expected Offering Timetable
| Event | Date |
|---|---|
| Bidding and Book-Building Period for Participating Parties | A period of five (5) business days commencing on Sunday 17/08/1446H (corresponding to 16/02/2025G) until the end of Thursday 21/08/1446H (corresponding to 20/02/2025G). |
| Subscription Period for Individual Subscribers | A period of three (3) business days commencing on Wednesday 05/09/1446H (corresponding to 05/03/2025G) until the end of Sunday 09/09/1446H (corresponding to 09/03/2025G). |
| Deadline for Submission of Subscription Application Forms for Participating Parties Based on the Number of Provisionally Allocated Offer Shares | Monday 03/09/1446H (corresponding to 03/03/2025G). |
| Deadline for Payment of Subscription Monies for Participating Parties Based on the Number of Provisionally Allocated Offer Shares | Wednesday 05/09/1446H (corresponding to 05/03/2025G). |
| Deadline for Submission of Subscription Application Forms and Payment of Subscription Monies for Individual Subscribers | Sunday 09/09/1446H (corresponding to 09/03/2025G). |
| Announcement of Final Allocation of Offer Shares | Thursday 13/09/1446H (corresponding to 13/03/2025G). |
| Refund of Excess Subscription Monies (if any) | Sunday 16/09/1446H (corresponding to 16/03/2025G). |
| Expected Date of Commencement of Trading on the Exchange | Trading of the Company’s shares on the Exchange is expected to commence after fulfillment of all relevant statutory requirements. Trading will be announced on the website of the Saudi Exchange. |
Note: The above timetable and dates therein are indicative. Actual dates will be communicated through announcements appearing on the websites of the Saudi Exchange (www.saudiexchange.sa), the Financial Advisors (www.gibcapital.com), (www.albilad-capital.com), (www.alrajhi-capital.com), and the Company (www.ummalqura.com.sa).
Read the full Prospectus
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
Further updates regarding this IPO will be provided as more information becomes available.